MGE takes seriously our responsibility to provide safe, reliable energy at reasonable rates. We work hard to control our costs. In 2023, MGE filed an application with the Public Service Commission of Wisconsin (PSCW) to increase electric rates in 2024. The PSCW approved changes, setting our electric rates. Effective Jan. 1, 2024, electric rates for residential customers increased 1.54%.
Electric costs for 2024 include investments made in the West Riverside Energy Center, solar investments and continued investments in grid modernization projects. The collection of the escrow accounts for uncollectible costs, including costs related to COVID, also are included in electric costs for 2024.
In 2023, the PSCW approved an $8.7 million fuel surcharge for MGE electric customers. Actual fuel costs used for electric generation in 2022 were higher than the forecasted fuel costs approved by the PSCW in MGE's 2022 fuel cost plan. This surcharge is part of a standard review the PSCW performs and a statutory process that MGE must follow. Fuel costs are a direct pass-through cost to customers, meaning the price that MGE pays for the fuel itself is the same price customers pay for it.
The surcharge of $0.00291 per kilowatt-hour (kWh) will be recovered over a 12-month period from October 2023 through September 2024 to help reduce rate volatility for customers. The typical residential electric customer using 500 kWh a month would see an estimated bill increase of about $1.44 a month over the 12-month period.
This surcharge applies to electric use for all rate classes excluding Green Power Tomorrow (GPT) and Shared Solar kWh. If customers purchase 100% of their energy through GPT, for example, they do not pay for the fuel for which the surcharge applies.
For customers who purchase less than 100% of their electricity through GPT and/or Shared Solar, the surcharge will be applied only to that electricity not covered by GPT and/or Shared Solar. For example, if a customer purchases 60% through GPT and/or Shared Solar, then the surcharge will be applied to 40% of their kWh.
Email mge@mge.com or call us at 608-252-7222 from 7 a.m. to 7 p.m. Monday through Friday
Long-distance, toll-free: 1-866-252-7080
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